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Costs generally incurred by a newly established entity include 1. Preopening costs of a business facility 2. Recipes, secret formulas, models and designs, prototype 3.
Costs generally incurred by a newly established entity include 1. Preopening costs of a business facility 2. Recipes, secret formulas, models and designs, prototype 3. Training, customer loyalty, and market share 4. An in-house-generated accounting software 5. The design of a pilot plan 6. Licensing, royalty, and stand-still agreements 7. Operating and broadcast rights 8. Goodwill purchased in a business combination 9. A company-developed patented drug approved for medical use 10. A license to manufacture a steroid by means of a government grant 11. Cost of courses taken by management in quality engineering management 12. A television advertisement that will stimulate the sales in the technology industry Required: Which of the previously mentioned costs are eligible for capitalization according to IAS38, and which of them should be expensed when they are incurred? Justify your answers according to the criteria you may know
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